Why the next three years could look very different from the last three

An equity investor typically follows the definition of an index provider such as MSCI to classify a country into one of three categories: developed, emerging, or frontier market. For MSCI to classify a country in emerging markets, its market would need to meet minimum thresholds for economic development, market size, and liquidity, but still show certain limitations in accessibility for international investors, which developed markets do not have (e.g. capital flow restrictions, foreign ownership limits, or operational inefficiencies). The third category, frontier markets, falls below emerging standards in size, liquidity, and institutional robustness.

Washington has begun to change how it engages with corporate America. Instead of relying only on subsidies and loans, the federal government is now taking direct stakes in listed firms at the centre of national security.